Labor Market and Economy Report: A Look at Trends in August 2025

Executive Summary

Job Growth

The U.S. economy added 22,000 jobs in August. Employment has shown little change since April.

After revisions, employment in June and July combined is now 21,000 lower than previously reported.

Unemployment and Labor Force Participation

The unemployment rate increased slightly from 4.2% in July to 4.3% in August. The labor force participation rate increased from 62.2% to 62.3%.

Unemployment rates specific to the industries Aston Carter supports were as follows for August: finance and insurance (1.9%), professional and business services (3.7%), hospitals (1.5%), utilities (1.4%), manufacturing (3.9%) and construction (3.3%).

Among skilled labor categories Aston Carter sources talent for, unemployment in business and financial was 2.8% and office and administrative was 3.9%.

Inflation

The year-over-year inflation rate increased by 2.9% between August 2024 and August 2025, slightly above the 2.7% increase recorded in July. The CPI has now increased for four consecutive months.

Wage Growth

Average hourly earnings increased by 3.7% for the 12 months ending August, slightly below July’s increase of 3.9%. “Real” average hourly earnings (wages adjusted for inflation) increased by 0.7% between August 2024 and August 2025. In other words, average hourly earnings are keeping up with inflation, but consumers may still be feeling the pressure of higher prices.